Barclays backer cashes in

BARCLAYS ' biggest Middle Eastern investor has bagged almost £1.5bn in profit, after selling a near-12 per cent stake in the bank. The Abu Dhabi-based International Petroleum Investment Company - headed by billionaire Manchester City owner Sheikh Mansour Bin Zayed Al Nahyan - has sold more than 1.3 billion shares.

BARCLAYS ' biggest Middle Eastern investor has bagged almost £1.5bn in profit, after selling a near-12 per cent stake in the bank.

The Abu Dhabi-based International Petroleum Investment Company - headed by billionaire Manchester City owner Sheikh Mansour Bin Zayed Al Nahyan - has sold more than 1.3 billion shares.

Barclays turned to Abu Dhabi and Qatar last autumn to strengthen its balance sheet at the height of the financial crisis. The sheikh bought £2bn of convertible notes, which could be changed into Barclays shares at 153p. These were sold for 265p - netting him a profit of almost £1.5bn. Almost 12 per cent of the banking giant changed hands under the deal, which IPIC said reflected its focus on oil and gas investment. It said: "The Emirate of Abu Dhabi intends to maintain a close commercial and strategic relationship with Barclays in the future."

Al Nahyan also holds warrants which give him the right to buy further shares in Barclays which would amount to a six per cent stakeOther Middle East investors - the Qatari Investment Authority and Challenger , which represents Qatar's royal family - have holdings and warrants equivalent to a potential 15 per cent stake in the bank.